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U.S. Securities and Exchange Commission

Before the

May 19, 2004

File No. 3-11493

In the Matter of



ACT OF 1940


The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest that public administrative proceedings be, and hereby are, instituted pursuant to Section 203(f) of the Investment Advisers Act of 1940 ("Advisers Act") against Luis Giro ("Giro" or "Respondent").


After an investigation, the Division of Enforcement alleges that:

1. At all relevant times, Giro was associated as an officer and director of Giro Investments Group, Inc. ("Giro Investments"), an investment adviser that was not registered with the Commission or the State of Florida.

2. On April 29, 2004, a default final judgment was entered against Giro, permanently enjoining him from future violations of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 206(1) and 206(2) of the Advisers Act, in the civil action entitled Securities and Exchange Commission v. Luis Giro, Case No. 03-21654-CIV-Gold, in the United States District Court for the Southern District of Florida.

3. The Commission's complaint alleged that from approximately March 1997 through October 2001 Giro, operating through his wholly-owned company Giro Investments, conned at least 20 people -- made up of relatives, neighbors and long time family friends -- out of more than $2,370,000. The complaint further alleged that Giro assured his clients that their funds were safe, falsely telling them that he was making risk free or low risk investments, and generating high returns, and that he provided them with monthly account statements showing fictitious returns. The complaint also alleged that Giro engaged in highly speculative trading, which resulted in massive losses to his clients and investors, and that he misappropriated his victims' funds.


In view of the allegations made by the Division of Enforcement, the Commission deems it necessary and appropriate in the public interest that public administrative proceedings be instituted to determine:

A. Whether the allegations set forth in Section II are true and, in connection therewith, to afford the Respondent an opportunity to establish any defenses to such allegations; and

B. What, if any, remedial action is necessary and appropriate in the public interest against Giro pursuant to Section 203(f) of the Advisers Act.


IT IS ORDERED that a public hearing for the purpose of taking evidence on the questions set forth in Section III hereof shall be convened at a time and place to be fixed, and before an Administrative Law Judge to be designated by further order as provided by Rule 200 of the Commission's Rules of Practice, 17 C.F.R. 201.200.

IT IS FURTHER ORDERED that Respondent shall file an Answer to the allegations contained in this Order within twenty (20) days after service of this Order, as provided by Rule 220 of the Commission's Rules of Practice, 17 C.F.R. 201.220.

If Respondent fails to file the directed answer, or fails to appear at a hearing after being duly notified, Respondent may be deemed in default and the proceedings may be determined against him upon consideration of this Order, the allegations of which may be deemed to be true as provided by Rules 155(a), 220(f), 221(f) and 310 of the Commission's Rules of Practice, 17 C.F.R. 201.155(a), 201.220(f), 201.221(f) and 201.310.

This Order shall be served forthwith upon Respondent personally or by certified mail.

IT IS FURTHER ORDERED that the Administrative Law Judge shall issue an initial decision no later than 210 days from the date of service of this Order, pursuant to Rule 360(a)(2) of the Commission's Rules of Practice.

In the absence of an appropriate waiver, no officer or employee of the Commission engaged in the performance of investigative or prosecuting functions in this or any factually related proceeding will be permitted to participate or advise in the decision of this matter, except as witness or counsel in proceedings held pursuant to notice. Since this proceeding is not "rule making" within the meaning of Section 551 of the Administrative Procedure Act, it is not deemed subject to the provisions of Section 553 delaying the effective date of any final Commission action.

For the Commission, by its Secretary, pursuant to delegated authority.

Jonathan G. Katz



Modified: 05/19/2004